France Moves to Tax Crypto as Cost-of-Living Protests Erupt

France’s National Assembly on October 16 approved by 38 votes to 37, with 25 abstentions, an amendment to tax private crypto investors who convert profits into qualifying fiat-backed stablecoins, starting January 1, 2027, if the budget becomes law. Left-wing lawmaker Nicolas Sansu introduced the measure, arguing investors should not avoid immediate taxation by swapping Bitcoin into dollar-backed tokens rather than euros. France already taxes private crypto profits at 31.4%, but most crypto-to-crypto exchanges defer taxation; the amendment would end that deferral for such stablecoin conversions. The government opposed the proposal, warning that tracking these transactions could be complicated, and the vote came as living-cost protests drew hundreds of thousands and led to more than 2,500 people taken into custody.